WASHINGTON — The Federal Deposit Insurance Corp. warned banks under its watch Wednesday about the risks of acquiring participations in loans while relying too heavily on originating institutions for the underwriting.

In an advisory letter to all FDIC-supervised banks, the agency said that type of "over-reliance on lead institutions has in some instances caused significant credit losses and contributed to bank failures, particularly for loans to out-of-territory borrowers and obligors involved in industries unfamiliar to the bank."

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